Gold tops $3,000 an ounce for the first time as trade tensions and rate cut bets fuel rally
Mumbai: Gold surpassed the $3,000-an-ounce mark for the first time on March 14, extending its record-breaking rally as economic uncertainty, trade tensions, and expectations of US interest rate cuts drive demand for the safe-haven asset, media reports said.
At 10:15 GMT, spot gold rose 0.4% to $3,000.87 an ounce, while US gold futures gained 0.7% to $3,013.60, Business Today reported.
What’s fuelling gold’s surge?
Gold has hit 13 all-time highs this year, maintaining its upward trajectory for a second consecutive week.
The rally is being propelled by concerns over inflation, Federal Reserve policies, and geopolitical tensions.
Even with a recent encouraging inflation reading, market volatility continues to strengthen gold’s appeal.
Further fuelling the momentum, US President Donald Trump’s tariff threats have heightened trade war fears, reinforcing gold’s status as a hedge.
On Thursday, Trump warned of a 200% tariff on alcohol imports from Europe, raising concerns about global trade disruptions.
Will gold continue its ascent?
Unless market conditions shift drastically—such as a significant easing of geopolitical tensions or a sustained stock market rally—gold’s price is expected to keep climbing.
Historically, when gold reaches record highs, it tends to retain its value rather than experiencing sharp declines.
Analysts are already looking at the next milestone of $3,500 per ounce in the coming months.
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